2. Electronic
Banking
The provision of banking service through electronic
channels and the customer can access the data without time
and geographical limitation. It is also know as E-banking or
EFT (Electronic Fund Transfer).
3. MOBILE
BANKING
Mobile banking (also known as M-
Banking, SMS Banking) is a term used for
performing balance checks, account
transactions, payments, credit applications and
other banking transactions through a mobile
device such as a mobile phone or Personal
Digital Assistant (PDA).
Current Mobile Banking Applications:
– SMS Banking
– WAP Banking
– STK (Sim Toolkit) Banking
4. EVoLUTION OF ELECTRONIC AND
MOBILE BANKING
Online services started in New York in 1981 when four of the city’s
major banks (Citibank, Chase Manhattan, Chemical and Manufacturers
Hanover) offered home banking services using the videotex system.
May 1995: Wells Fargo – the first bank in the world offer customer
access to their accounts over the internet.
The earliest mobile banking services were offered over SMS.
With the introduction of the 1st primitive smart phones with WAP
support enabling the use of the mobile web in 1999, the first European
banks started to offer mobile banking.
5. Role of Banking in New Economy
• Internet and mobile devices have brought new rules to economy
and shaped the way to do business
• Banks has also evolved according to the new economy and took
their places in this new world to add value to their customer
• The new ways to do business are :
– E-commerce
– M-commerce
6. ADVANTAGES OF E-BANKING
AND
M-BANKING:
Benefits for Banks
Benefits for Small to Medium
Businesses
Benefits for Customers
7. Benefits for Banks
Large customer coverage
Reducing the costs of operations
Promoting their services and products internationally
Increasing the customer satisfaction and providing a
personalized relationship with customers
8. Benefits for Small to Medium
Businesses
To run its operations more
effectively
Lower cost than traditional
financial management
mechanisms
10. Disadvantages of online and
mobile banking
• Security
• Fraudulent Bank websites
• Ignorance
• Illiteracy
• Poor and/or lack of technological infrastructure and reliable
power supply
• Preference to paper money, as opposed to “virtual” cash in
transactions
11. Internet banking in india
ICICI was the first bank to initiate the Internet banking revolution in
India as early as 1997 under the brand name ‘Infinity’.
The Reserve Bank of India constituted a working group on Internet
Banking. The group divided the internet banking products in India into 3
types based on the levels of access granted. They are:
Information Only System
Electronic Information Transfer System
Fully Electronic Transactional System
o Automated Teller Machine (ATM)
o Credit Cards/Debit Cards
o Smart Card
12. Mobile Banking in India
Reserve Bank of India had set up the Mobile Payments Forum Of
India (MPFI), a ‘Working Group on Mobile Banking’ to examine
different aspects of Mobile Banking (M-banking). The Group had
focused on three major areas of M-banking, i.e.,
Technology and security issues,
Business issues and
Regulatory and supervisory issues.
13. LATEST ON MOBILE BANKING IN INDIA
• Mobile Banking: Nokia Partners with Union Bank
of India
• Airtel Gets RBI’s Nod for Mobile Payment
Services [First Step to Mobile Currency]
• Nokia Mobile Money Transfer Services in India
• SEBI mulls Mobile Trading, RBI Increases Daily
Transaction Limits [mCommerce Boost]
14. INTERNET AND MOBILE BANKING IN
INDIA
India World
Internet Users 8.4% 32.7%
Mobile Users 74.15% 79.86%
Presently, India has 700 million+ mobile subscribers, just 240
million individuals with bank accounts, 20 million credit cards,
88,000 bank branches, and 70,000 ATMs. Of the households without
a bank account, 42 percent have at least one mobile phone.
By 2015, $350 billion in payment and banking transactions
could flow through mobile phones, compared with about $235
billion of total credit- and debit-card transactions today.
(Source : World Bank, The Boston Consulting Group)
15. Avail the following services through
E-Banking AND M-BANKING:
Bill payment service Alerts on account Status on cheque, stop
activity or passing of set payment on cheque
Fund transfer thresholds
Ordering cheque books
Credit card customers Monitoring of term
deposits Balance checking in the
Railway pass account
Investing through Access to loan
statements Recent transactions
Internet banking
Access to card Due date of payment
Recharging your (functionality for
prepaid phone statements
stop, change and
Shopping Mutual funds / equity deleting of payments)
statements
Mini-statements and PIN provision, Change
checking of account Insurance policy of PIN and reminder
history management over the Internet
Pension plan
management
16. Precautions for Electronic and
mobile Banking:
For Bank:
Should provide specific guidance to their customers
For Customers:
Should not disclose their customer IDs or Passwords to anyone
else.
Periodically change their passwords
Should promptly log out from the service
Should regularly check their account balances and statements to
identify unusual transactions.
Don’t access Corporate Cyber banking through public terminals
To safeguard the Computer and Phone from hackers install anti
virus and anti spywares
17. Conclusion:
In this busy world computer and mobiles are
playing vital role. Every good thing has some bad corners.
Likewise Electronic and Mobile banking also have many
benefits and some drawbacks. It’s all based on the user. If
we use electronic and mobile banking properly then it is
very useful for the people. It is helpful to improve the
economy of the country.
